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Direct Energy to buy gas assets in Alberta

By OGJ editors
HOUSTON, Aug. 12
-- Direct Energy, a North American gas and electricity retailer, has agreed to acquire producing natural gas interests in the Wildcat Hills area 35 km northwest of Calgary, Alta., from Suncor Energy for $375 million (Can.).

Involved are production of about 80 MMcfd of gas equivalent and reserves of 241 bcf of gas equivalent. The assets include 97 producing wells, associated infrastructure, and 42,000 net acres of undeveloped land.

Direct Energy parent Centrica PLC said the acreage holds potential for development of unconventional resources. The buyer said potential also exists to increase recovery from currently producing reservoirs.

Suncor said the sale is part of a plan to divest noncore assets. Including the new deal, the company has sold or agreed to sell assets worth $2.8 billion.

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